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Data Center IT Infrastructure Market Size 2025-2029

The data center IT infrastructure market size is valued to increase by USD 106.6 billion, at a CAGR of 7.3% from 2024 to 2029. Technology refresh cycles will drive the data center it infrastructure market.

Market Insights

North America dominated the market and accounted for a 35% growth during the 2025-2029.
By Component - Server infrastructure segment was valued at USD 68.70 billion in 2023
By End-user - BFSI segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 66.70 billion 
Market Future Opportunities 2024: USD 106.60 billion
CAGR from 2024 to 2029 : 7.3%

Market Summary

The market is a critical component of the digital economy, underpinning the digital transformation initiatives of businesses worldwide. This market is driven by several factors, including technology refresh cycles and the growing demand for advanced capabilities to support artificial intelligence (AI), machine learning (ML), and deep learning (DL) technologies. Data centers are the backbone of modern business operations, enabling organizations to process and store vast amounts of data. With the increasing adoption of cloud services and the proliferation of IoT devices, the need for robust and scalable IT infrastructure is more crucial than ever. One real-world business scenario illustrating the importance of data center IT infrastructure is supply chain optimization.
A global manufacturing company, for instance, relies on real-time data analytics to monitor production processes and optimize inventory levels. A reliable and secure IT infrastructure is essential to ensure uninterrupted access to this data and to enable quick decision-making. However, this market also faces significant challenges. Data security concerns and increasing cybersecurity threats are top priorities for organizations, necessitating the deployment of advanced security solutions. Additionally, the growing complexity of IT infrastructure requires specialized skills and expertise to manage and maintain it effectively. In conclusion, the market is a dynamic and evolving landscape, driven by the demands of digital business and the need for advanced capabilities.
Organizations must invest in robust and secure IT infrastructure to support their digital transformation initiatives and maintain a competitive edge.

What will be the size of the Data Center IT Infrastructure Market during the forecast period?

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The market continues to evolve, with recent research indicating a significant increase in spending on data center infrastructure, projected to reach 142.8 billion USD by 2027, growing at a steady rate of 5% annually. This trend is driven by several factors, including the increasing adoption of cloud services, the growing demand for data center modernization, and the need for enhanced security and compliance. One area of focus for organizations is network security protocols, with spending on data center security expected to reach 3.8 billion USD by 2026. Another critical area is energy efficiency, as data centers consume vast amounts of power.
Energy-efficient solutions, such as virtualization technologies and cooling system optimization, are becoming increasingly important for reducing operational costs and minimizing environmental impact. Moreover, capacity management tools, such as server load balancing and network traffic engineering, are essential for ensuring optimal system performance and availability. As businesses continue to rely on data centers to support their digital transformation initiatives, IT infrastructure decisions will remain a top priority for boardrooms, with budgeting, compliance, and product strategy being key decision areas.

Unpacking the Data Center IT Infrastructure Market Landscape

In the dynamic IT infrastructure landscape, data centers continue to play a pivotal role in enabling business continuity and digital transformation. High-availability systems ensure uninterrupted services, while remote monitoring systems facilitate real-time issue identification and resolution, reducing downtime by 45%. IT asset management optimizes hardware utilization by 30%, enhancing ROI. Edge computing deployment brings processing closer to end-users, improving network latency metrics by 50%. Environmental monitoring sensors and IT infrastructure monitoring tools enable proactive maintenance, reducing power consumption by 20%. Cloud migration strategies, software-defined networking, and virtual desktop infrastructure streamline operations and improve network bandwidth utilization. Power distribution units, server virtualization, and hardware lifecycle management optimize resource allocation. Building management systems and capacity planning models ensure efficient use of space. Disaster recovery pl

The global Data Center Infrastructure Management (DCIM) market size reached USD 2.08 Billion in 2022 and is expected to reach USD 6.01 Billion in 2032 registering a CAGR of 11.2%. Data Center Infrastructure Management market growth is primarily driven owing to rapid adoption of cloud computing along...

Data Center Infrastructure Market Outlook

The global data center infrastructure market size was valued at approximately USD 50 billion in 2023 and is projected to reach USD 100 billion by 2032, growing at a CAGR of 7.5% during the forecast period. This rapid growth is primarily driven by the increasing demand for data storage and management solutions, driven by the exponential growth in data generation across various industries. Factors such as the proliferation of cloud computing, the rise of big data analytics, and the ongoing digital transformation of businesses are key contributors to the market's expansion.

One of the major growth factors for the data center infrastructure market is the increasing adoption of cloud services. Organizations across the globe are increasingly moving their operations to the cloud to achieve greater flexibility, scalability, and cost-efficiency. This migration necessitates robust data center infrastructure to manage and store vast amounts of data securely and reliably. As businesses continue to embrace cloud computing, the demand for sophisticated data center solutions is expected to surge, thereby driving market growth.

Another significant driver of market growth is the rapid advancement in technologies such as Artificial Intelligence (AI) and Internet of Things (IoT). These technologies generate enormous volumes of data that need to be processed, stored, and analyzed in real-time. Consequently, there is a growing need for advanced data center infrastructure that can handle the increased data load and provide seamless connectivity and high-performance computing capabilities. The integration of AI and IoT in various applications is expected to fuel the demand for modern data centers, further propelling the market.

The increasing focus on data security and regulatory compliance also plays a crucial role in the expansion of the data center infrastructure market. With the growing incidences of cyber-attacks and data breaches, organizations are prioritizing the implementation of robust security measures to protect their sensitive information. This has led to a higher demand for secure data center facilities equipped with advanced security solutions and compliance frameworks. As regulatory requirements become more stringent, the need for compliant and secure data centers is expected to rise, driving market growth.

From a regional perspective, North America holds a significant share of the global data center infrastructure market, driven by the presence of major technology companies and the early adoption of advanced technologies. However, the Asia Pacific region is anticipated to witness the highest growth rate during the forecast period, attributed to the rapid digitalization of economies, the expansion of cloud service providers, and the increasing investments in data center infrastructure by both local and global players. The growing demand for data storage and management solutions in emerging markets such as China and India is expected to be a key factor driving the regional market growth.

The process of Data Center Construction plays a pivotal role in the expansion of the data center infrastructure market. As organizations seek to enhance their data storage and processing capabilities, the construction of new data centers becomes essential to meet the growing demand. This involves not only the physical building of facilities but also the integration of advanced technologies and sustainable practices. The design and construction of data centers are increasingly focusing on energy efficiency, scalability, and resilience to ensure they can support the ever-evolving technological landscape. As a result, data center construction is becoming a critical component in the strategic planning of businesses aiming to leverage digital transformation.

Component Analysis

The data center infrastructure market is segmented by component into hardware, software, and services. Hardware components form the backbone of data center infrastructure, including servers, storage devices, and networking equipment. These components are essential for the physical functioning of data centers, ensuring the efficient processing and management of data. The hardware segment is witnessing continuous innovation, with advancements in processor technologies, high-capacity storage solutions, and ultra-fast networking equipment. The adoption of hyper-converged infrastructure and edge computing is further bolstering the demand for advanced

Data Center Infrastructure Management (DCIM) Market Report Segments the Industry Into Data Center Size(Small and Medium, and More), Deployment Type (On -Premise, Colocation), Component(solutions, Services), End-User Industry(IT and Telecom, BFSI and More) and Geography (North America, Europe, and More). The Market Forecasts are Provided in Terms of Value (USD).

Data Center Infrastructure Market Outlook

According to our latest research, the global data center infrastructure market size reached USD 266.2 billion in 2024, reflecting robust expansion driven by surging digital transformation initiatives and rising data consumption worldwide. The market is projected to grow at a CAGR of 7.5% from 2025 to 2033, reaching an estimated USD 509.6 billion by 2033. Key growth factors fueling this momentum include the proliferation of cloud computing, the exponential rise in data generation, and the increasing adoption of advanced technologies such as artificial intelligence, machine learning, and Internet of Things (IoT) across industries. As per the latest research, the market is witnessing significant investments in hyperscale and edge data centers, further catalyzing its upward trajectory.

One of the primary growth factors of the data center infrastructure market is the relentless surge in data creation and consumption. With the rapid digitization of businesses, e-commerce expansion, and the widespread use of smart devices, organizations are generating unprecedented volumes of data that require robust storage, processing, and management capabilities. This trend is further amplified by the adoption of advanced analytics, AI-driven applications, and real-time data processing, all of which demand high-performance infrastructure. As a result, enterprises are investing heavily in modernizing their data centers, integrating scalable IT infrastructure, and deploying advanced power and cooling solutions to ensure operational efficiency and business continuity.

Another significant driver is the accelerated shift towards cloud computing and hybrid IT environments. Enterprises are increasingly migrating critical workloads to the cloud to leverage its scalability, flexibility, and cost-efficiency. This transition has created a surge in demand for both hyperscale and colocation data centers, as businesses seek to balance on-premises and off-premises infrastructure. The need for agile, resilient, and secure data center infrastructure is further heightened by the growing prevalence of remote work, digital services, and edge computing. These dynamics are prompting data center operators to invest in state-of-the-art support infrastructure, such as advanced power management, cooling systems, and security solutions, to cater to evolving business requirements.

Sustainability and energy efficiency have emerged as crucial growth factors in the data center infrastructure market. With data centers accounting for a significant portion of global energy consumption, operators are under increasing pressure to adopt green technologies and sustainable practices. Regulatory mandates, rising electricity costs, and corporate sustainability goals are driving investments in energy-efficient power and cooling solutions, renewable energy integration, and innovative data center designs. The adoption of liquid cooling, modular data centers, and AI-driven energy management systems is gaining traction, enabling operators to reduce their carbon footprint while maintaining high performance and reliability. This focus on sustainability is not only enhancing operational efficiency but also shaping the competitive landscape of the market.

From a regional perspective, North America continues to dominate the data center infrastructure market, accounting for the largest share in 2024, driven by the presence of major technology giants, robust digital infrastructure, and high cloud adoption rates. However, Asia Pacific is emerging as the fastest-growing region, fueled by rapid digitalization, increasing investments in hyperscale data centers, and government initiatives supporting smart cities and digital economies. Europe is also witnessing steady growth, supported by stringent data protection regulations and a strong emphasis on sustainability. Meanwhile, Latin America and the Middle East & Africa are gradually catching up, with investments in new data center facilities and infrastructure upgrades to support their digital transformation agendas.

The global data center infrastructure management market size was worth around USD 3.96 billion in 2025 and is set to register a CAGR of more than 16.3%, exceeding USD 17.93 billion revenue by 2035, attributed to Sustainability and energy efficiency requirements

The global data center market, valued at $401.73 billion in 2025, is experiencing robust growth driven by the increasing adoption of cloud computing, big data analytics, and the Internet of Things (IoT). The proliferation of digital services across various sectors, including finance, manufacturing, and government, fuels the demand for robust and scalable data center infrastructure. Hosted services and public cloud services dominate the application segments, reflecting the ongoing shift towards cloud-based solutions. Geographically, North America and Asia Pacific are key regions, exhibiting significant market share due to the presence of major technology hubs and substantial investments in digital infrastructure. While the exact CAGR isn't provided, considering the industry's growth trajectory and the accelerating digital transformation, a conservative estimate of 10-15% annual growth over the forecast period (2025-2033) seems plausible. This growth is further propelled by the expansion of 5G networks and the rising demand for edge computing, which necessitates the deployment of smaller, geographically distributed data centers closer to end-users. However, challenges such as high infrastructure costs, energy consumption concerns, and regulatory complexities pose potential restraints on market expansion. The competitive landscape is characterized by a mix of hyperscale providers like Amazon Web Services, Google, and Microsoft, alongside traditional telecommunication companies and specialized data center operators. The market is witnessing increased consolidation as major players expand their global footprint through acquisitions and strategic partnerships. The forecast period (2025-2033) is expected to witness continued market expansion, driven by the aforementioned factors. While challenges remain, the long-term outlook for the data center market remains positive, with sustained growth projected across all segments and regions. The adoption of innovative technologies, such as AI and machine learning, within data centers is expected to further enhance efficiency and optimize resource utilization.

Global Data Center Infrastructure market size 2021 was recorded $42.228 Billion whereas by the end of 2025 it will reach $56.9 Billion. According to the author, by 2033 Data Center Infrastructure market size will become $103.307. Data Center Infrastructure market will be growing at a CAGR of 7.74% during 2025 to 2033.

Data Center Market Outlook

According to our latest research, the global data center market size reached USD 340.2 billion in 2024, exhibiting robust expansion driven by the exponential growth of digital transformation initiatives across industries. The market is projected to grow at a CAGR of 8.7% from 2025 to 2033, reaching an estimated USD 721.5 billion by 2033. This remarkable growth trajectory is primarily fueled by the escalating demand for cloud computing, the proliferation of Internet of Things (IoT) devices, and the increasing adoption of artificial intelligence (AI) and big data analytics.

One of the most significant growth factors in the data center market is the relentless surge in data generation worldwide. Enterprises and consumers alike are producing and consuming massive volumes of data daily, necessitating advanced storage, processing, and networking capabilities. This data deluge is further accelerated by the widespread adoption of 5G networks, which enable faster connectivity and support more devices per square kilometer than previous generations. As organizations pursue digital transformation, they increasingly rely on scalable, efficient, and secure data centers to support mission-critical applications, ensure business continuity, and drive innovation. The integration of AI and machine learning into data center operations has also enhanced predictive maintenance, resource optimization, and energy efficiency, further propelling market growth.

Another key driver is the rapid expansion of cloud service providers and hyperscale data centers. Major technology giants are investing heavily in building new data center facilities to meet the growing demand for cloud-based services, such as Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). These hyperscale data centers offer unparalleled scalability, flexibility, and cost-effectiveness, making them attractive to enterprises of all sizes. Additionally, the emergence of edge computing has prompted investments in distributed data center architectures, bringing computation and storage closer to the end-users and reducing latency. This trend is particularly relevant for applications requiring real-time processing, such as autonomous vehicles, smart cities, and industrial automation.

Sustainability and energy efficiency have emerged as pivotal considerations in the data center market. With data centers accounting for a significant share of global electricity consumption, operators are under increasing pressure to adopt green technologies and renewable energy sources. Innovative cooling solutions, energy-efficient hardware, and advanced power management systems are being deployed to minimize environmental impact and reduce operational costs. Regulatory frameworks and industry standards are also evolving to encourage sustainable practices and ensure compliance with environmental regulations. These factors not only enhance the marketÂ’s attractiveness but also position data centers as critical enablers of a sustainable digital economy.

Regionally, North America continues to dominate the data center market, supported by a mature IT infrastructure, high cloud adoption rates, and the presence of leading technology companies. However, Asia Pacific is emerging as the fastest-growing region, driven by rapid urbanization, increasing internet penetration, and favorable government initiatives aimed at digitalization. Europe is also witnessing steady growth, with investments in edge data centers and sustainable infrastructure gaining momentum. Latin America and the Middle East & Africa are gradually catching up, fueled by investments in telecommunications and the expansion of digital services. The global landscape is thus characterized by dynamic regional trends and a strong emphasis on innovation, efficiency, and sustainability.

Data Center Infrastructure plays a pivotal role in the seamless operation and expansion of digital services worldwide. As the backbone of modern data centers, infrastructure encompasses a wide array of components, including power systems, cooling solutions, and networking equipment. The evolution of data center infrastructure is driven by the need for higher efficiency, scalability, and sustainability. Innovations such as liquid cooling, modular

Internet Data Center Infrastructure market has been steadily increasing over recent years, and forecasts suggest a substantial growth trajectory in the upcoming period.

The global Modular Data Center System market is experiencing robust growth, driven by the increasing demand for scalable, efficient, and rapidly deployable data center solutions. The market size in 2025 is estimated at $15 billion, exhibiting a Compound Annual Growth Rate (CAGR) of 12% from 2025 to 2033. This significant expansion is fueled by several key factors, including the surge in cloud computing adoption, the growing need for edge computing infrastructure, and the rising prevalence of hyperscale data centers. Businesses are increasingly adopting modular data centers to overcome challenges associated with traditional data center construction, such as lengthy deployment times, high capital expenditure, and limited scalability. The prefabricated nature of these systems allows for faster installation and reduced downtime, making them an attractive option for organizations seeking to quickly expand their IT capacity. Furthermore, modular designs contribute to enhanced energy efficiency and reduced operational costs. However, the market faces certain restraints. High initial investment costs can be a barrier to entry for smaller organizations. Additionally, the market's growth is influenced by factors like the availability of skilled labor for installation and maintenance, evolving regulatory landscapes surrounding data center infrastructure, and potential supply chain disruptions. Nevertheless, ongoing technological advancements, particularly in areas such as AI-powered management systems and improved cooling technologies, are expected to further propel market growth. The competitive landscape is dynamic, with key players such as Huawei, IBM, Eaton, and others constantly innovating to offer advanced solutions and expand their market share. The segmentation of the market is influenced by factors like data center size, deployment location, and specific application needs. The forecast period of 2025-2033 paints a picture of sustained growth, with continued market expansion fueled by digital transformation across various industries.

The global data center infrastructure management (DCIM) market size reached USD 4.2 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 12.5 Billion by 2033, exhibiting a growth rate (CAGR) of 12.22% during 2025-2033.

IMARC Group provides an analysis of the key trends in each sub-segment of the global data center infrastructure management (DCIM) market report, along with forecasts at the global, regional and country level from 2025-2033. Our report has categorized the market based on solution type, data center size and vertical.

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Data Center Infrastructure Management (DCIM) Solutions Market Size 2025-2029

The data center infrastructure management (DCIM) solutions market size is valued to increase by USD 17.01 billion, at a CAGR of 26.6% from 2024 to 2029. Increased focus on energy management and green initiatives will drive the data center infrastructure management (DCIM) solutions market.

Market Insights

APAC dominated the market and accounted for a 37% growth during the 2025-2029.
By End-user - Large enterprises segment was valued at USD 2.3 billion in 2023
By Application - Asset and capacity management segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 660.58 million 
Market Future Opportunities 2024: USD 17010.50 million
CAGR from 2024 to 2029 : 26.6%

Market Summary

Data Center Infrastructure Management (DCIM) solutions have gained significant traction in the global market due to the increasing complexity of IT environments and the need for greater operational efficiency. These solutions enable organizations to manage and optimize their data center resources, from power and cooling to network and server capacity. One primary driver of the DCIM market is the growing focus on energy management and green initiatives. According to a recent study, data centers consume approximately 3% of the world's electricity, making energy efficiency a top priority. DCIM solutions help reduce energy consumption by monitoring and controlling power usage, leading to cost savings and a smaller carbon footprint.
Another trend in the DCIM market is the high adoption of Internet of Things (IoT) technology, in-built sensors, and edge computing. These technologies enable real-time monitoring and analysis of data center infrastructure, allowing for proactive maintenance and reducing downtime. For instance, a manufacturing company was able to optimize its supply chain by implementing a DCIM solution with IoT sensors. By monitoring power usage and identifying inefficiencies, the company was able to reduce energy consumption and save on costs. Despite these benefits, the DCIM market faces challenges such as high initial infrastructure costs and the need for related investments.
However, the long-term efficiency gains and compliance improvements make DCIM a worthwhile investment for organizations seeking to manage their data centers effectively. For example, a financial services firm reported a 15% improvement in operational efficiency after implementing a DCIM solution, leading to significant cost savings and improved compliance with regulatory requirements.

What will be the size of the Data Center Infrastructure Management (DCIM) Solutions Market during the forecast period?

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The market is a dynamic and evolving landscape, with organizations increasingly recognizing the need for efficient and effective management of their data center infrastructure. According to recent research, the global DCIM market is projected to grow by over 15% in the next year, highlighting its significance for business decision-makers. This growth can be attributed to several factors, including the increasing importance of compliance with data protection regulations, the need for operational cost reduction, and the growing complexity of data center environments. One trend that is driving the adoption of DCIM solutions is the focus on critical system redundancy and business continuity planning.
With the growing reliance on data centers for mission-critical operations, ensuring uninterrupted power supply, temperature control, and security threat detection is essential. DCIM solutions provide real-time monitoring and automation capabilities, enabling organizations to proactively manage their infrastructure and minimize downtime. Moreover, DCIM solutions offer significant benefits in terms of power consumption tracking and environmental control systems. With data centers consuming a substantial amount of energy, optimizing power usage is a key priority for organizations. DCIM solutions enable organizations to monitor power consumption in real-time, identify areas of wastage, and implement energy-saving measures. Additionally, they offer advanced cooling infrastructure design and airflow simulation modeling to ensure optimal operating temperatures, further reducing energy costs.
In conclusion, the DCIM Solutions Market is a critical area of investment for organizations seeking to manage their data center infrastructure efficiently and effectively. With its focus on critical system redundancy, power consumption optimization, and environmental control, DCIM solutions offer significant benefits in terms of operational cost reduction and business continuity planning.

Unpacking the Data Center Infrastructure Management (DCIM) Solutions Market Landscape

Data Center Infrastructu

Data Center IT Infrastructure Market Outlook

The global data center IT infrastructure market size was valued at approximately USD 210 billion in 2023 and is projected to reach around USD 390 billion by 2032, growing at a compound annual growth rate (CAGR) of 7.2% during the forecast period. This significant growth can be attributed to the rising demand for efficient data storage solutions and the rapid expansion of cloud-based services. As businesses continue to digitize their operations, the need for robust data centers to manage and process vast amounts of data has become more pronounced, fostering further development and investment in IT infrastructure.

One of the primary factors driving the growth of the data center IT infrastructure market is the exponential increase in data generation across various industries. The proliferation of IoT devices, coupled with advancements in artificial intelligence and machine learning, has led to an unprecedented surge in data production. Enterprises are increasingly leveraging big data analytics to gain insights and make data-driven decisions, necessitating scalable and efficient data center infrastructures. Additionally, the shift towards cloud computing has made it imperative for companies to upgrade their IT infrastructure to support hybrid and multi-cloud environments, further propelling market growth.

Another critical growth factor is the continuous evolution of IT technologies and the innovation in hardware components. As technology advances, there is a growing demand for high-performance servers, enhanced storage solutions, and efficient networking hardware. The introduction of 5G technology and edge computing has also contributed significantly to the growth of the data center infrastructure market. These technologies require low-latency and high-speed data processing capabilities, prompting organizations to invest in modernizing their data center facilities. Furthermore, the focus on energy efficiency and sustainability in data center operations has led to increased adoption of advanced cooling solutions and power management systems.

The increasing emphasis on data privacy and security regulations is another growth driver for the data center IT infrastructure market. With the implementation of stringent data protection laws such as the GDPR in Europe and other similar regulations globally, organizations are compelled to enhance their data center capabilities to ensure compliance. This has led to investments in advanced security infrastructure, including firewalls, encryption technologies, and intrusion detection systems, to safeguard sensitive information. As cyber threats continue to evolve, the demand for robust IT infrastructure that can provide secure and reliable data management solutions is expected to rise, driving market expansion.

The role of a Data Centre Server is pivotal in the modern IT landscape, as it forms the core of data center operations. These servers are designed to handle large-scale data processing, storage, and management tasks, enabling enterprises to efficiently run their applications and services. With the increasing reliance on cloud computing and big data analytics, the demand for powerful and scalable data centre servers has surged. Organizations are investing in advanced server technologies to ensure high availability, reliability, and performance, which are crucial for maintaining competitive advantage in today's digital economy. As enterprises continue to expand their IT capabilities, the importance of robust data centre servers in supporting business growth and innovation cannot be overstated.

Regionally, North America continues to dominate the data center IT infrastructure market, with a significant share of global revenue. The region's leadership can be attributed to the presence of major technology companies and an established IT ecosystem. Furthermore, the widespread adoption of cloud services and digital transformation initiatives by enterprises in North America have spurred the demand for advanced data center infrastructure. However, Asia Pacific is poised to witness the highest growth rate during the forecast period, driven by rapid digitalization, increasing internet penetration, and favorable government policies supporting IT infrastructure development. Countries like China and India are at the forefront of this growth, with numerous data center projects underway to cater to the rising demand for cloud services and data management solutions.

Component Analysis

Snapshot img { margin: 10px !important; } Some of the key findings from our data center network infrastructure market forecast report are summarized below

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Global Data Center Network Infrastructure Industry Overview

Vendors are increasingly adopting AI technologies in data center networking. The implementation of AI across different components of data centers will enable end-users to automate repetitive tasks and minimize errors caused due to human intervention. AI also helps in enhancing the overall data center network performance by managing network bottlenecks, fixing network utilization issues, and providing proper bandwidth allocation within cloud data centers. The use of AI is expected to increase further in network infrastructure monitoring tools and network equipment such as routers and switches shortly. This rise in AI/ML applications in data center networking will be a critical data center network infrastructure market trend driving the growth of the data center network infrastructure market size.

Hyperscalers and colocation service providers are making significant investments to increase the number of data centers in current locations as well as in new regions. The enormous volumes of data generated by applications such as IoT and the shift of network storage from protocols such as Fiber Channel (FC) to Ethernet-based solutions have increased the bandwidth requirements. Applications such as VDI and the increasing density of servers are also boosting the demand for high-bandwidth solutions. To cater to this growing demand, hyperscalers and colocation service providers are implementing high-bandwidth solutions such as 100 GbE and 400 GbE solutions in their data centers. The increasing demand for high-bandwidth switches by hyperscalers and colocation service providers will fuel the growth of the data center network infrastructure market. Although the growth momentum of the data center network infrastructure market is decelerating, it will continue to register a CAGR of over 12% during the forecast period.

Top Data Center Network Infrastructure Companies Covered in this Market Research Report

The global data center network infrastructure market is concentrated. To help clients improve their market position, this report provides an analysis of the market’s competitive landscape and offers information on the products offered by various companies. Moreover, this data center network infrastructure market analysis report also includes information on the upcoming trends and challenges that will influence market growth. This will help companies create strategies to make most of the future growth opportunities.

The report offers a detailed analysis of several leading data center network infrastructure companies, including:

Arista Networks Inc.
Cisco Systems, Inc.
Dell Technologies Inc.
Hewlett Packard Enterprise Development LP
Huawei Technologies Co. Ltd.
Juniper Networks Inc.

Data Center Network Infrastructure Market Segmentation Based on Technology

Ethernet switches
Data center interconnect
Routers
Other networking infrastructure

The Ethernet switches segment will account for the highest data center network infrastructure market share. The need for higher bandwidths and the adoption of virtualization are some of the significant factors which will contribute to the data center network infrastructure market growth in this segment. This report provides an accurate prediction of the contribution of all the segments to the growth of the data center network infrastructure market size.

Data Center Network Infrastructure Market Segmentation Based on Geographic Region

APAC
Europe
MEA
North America
South America

With a complete study of the growth opportunities for the companies, it has been identified that North America will account for the highest share of the data center network infrastructure market size throughout the forecast period. Factors such as growing demand for cloud services and implementation of backup and disaster recovery solutions are fueling the growth of the data center network infrastructure market in this region.

Key Highlights of the Global Data Center Network Infrastructure Market Report for the Forecast Period 2019-2023

CAGR of the market during the forecast period 2019-2023
Detailed information on factors that will decelerate the growth of the data center network infrastructure market during the next five years
Precise estimation of the global data center network infrastructure market size and its contribution to the parent market
Accurate predictions on upcoming trends and changes in consumer behavior
The growth of the data center network infrastructure industry across APAC, Europe, MEA, North America, and South America
A thorough analysis of the market’s competitive landscape and detaile

Global data center infrastructure management (DCIM) market worth at USD 3.03 Billion in 2024, is expected to surpass USD 14.49 Billion by 2034, with a CAGR of 17% from 2025 to 2034.

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Data Center Market Size 2025-2029

The data center market size is valued to increase USD 535.6 billion, at a CAGR of 15.6% from 2024 to 2029. Rise in adoption of multi-cloud and network upgrades will drive the data center market.

Major Market Trends & Insights

North America dominated the market and accounted for a 35% growth during the forecast period.
By Component - IT infrastructure segment was valued at USD 109.40 billion in 2023
By End-user - BFSI segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 248.77 billion
Market Future Opportunities: USD 535.60 billion
CAGR : 15.6%
North America: Largest market in 2023

Market Summary

The market represents a dynamic and continually evolving landscape, driven by the increasing demand for digital transformation and the adoption of advanced technologies. Core technologies, such as artificial intelligence (AI) and multi-cloud solutions, are revolutionizing data center operations, with AI implementation projected to increase by 40% by 2025. Meanwhile, applications in sectors like finance, healthcare, and retail are fueling the growth of data centers. Service types, including colocation, managed services, and cloud services, are adapting to meet the demands of these evolving applications.
Regulatory compliance, particularly around data security and privacy, remains a significant challenge. Despite these hurdles, opportunities abound, with the market expected to grow at a steady pace, particularly in regions like Asia Pacific and Europe, where digital transformation is accelerating.

What will be the Size of the Data Center Market during the forecast period?

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How is the Data Center Market Segmented and what are the key trends of market segmentation?

The data center industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Component

  IT infrastructure
  Power management
  Mechanical construction
  General construction
  Security solutions


End-user

  BFSI
  Energy
  IT
  Others


Design

  Traditional
  Containerized
  Modular


Data Center Size

  Small and Medium Data Centers
  Large Data Centers


Tier Type

  Tier 1 and 2
  Tier 3
  Tier 4


Type

  Enterprise Data Centers
  Colocation Data Centers
  Cloud Data Centers
  Managed Data Centers
  Edge Data Centers


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    UAE


  APAC

    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Component Insights

The it infrastructure segment is estimated to witness significant growth during the forecast period.

Data centers are essential IT infrastructure components that house the hardware and systems required to support the increasing demand for computing power and data storage. The market encompasses various technologies, including server hardware, storage infrastructure, software-defined data centers (SDDC), network infrastructure, converged infrastructure, backup and recovery software, automation software, and data center infrastructure management (DCIM) solutions. Enterprises worldwide are adopting cloud technologies, leading to a shift from on-premises data centers to cloud-based alternatives. This trend is fueled by the need for scalability, flexibility, and cost savings. According to recent reports, the adoption of cloud services has grown by 25%, with an estimated 30% of all workloads expected to be run in the cloud by 2022.

Moreover, the rise of edge computing and the Internet of Things (IoT) is driving the demand for bandwidth utilization and low latency, leading to the deployment of edge data centers. The uninterruptible power supply (UPS) systems market is projected to expand at a steady pace due to the increasing importance of ensuring data center uptime and minimizing downtime. Structured cabling systems and fiber optic cabling are essential for efficient data transfer and communication within data centers. The market for these systems is expected to grow by 12% due to the need for high-speed connectivity and the increasing adoption of advanced technologies like software-defined networking (SDN) and hyperconverged infrastructure (HCI).

Data center automation and virtual machine management are crucial for managing the complexity of modern data centers. These technologies are expected to experience a growth rate of 15%, driven by the need for efficient resource utilization and the increasing adoption of DevOps practices. The market for high-availability clusters and disaster recovery planning solutions is expecte

The United States Data Center Construction Market is Segmented by Tier Type (Tier 1 and 2, Tier 3 and Tier 4), Data Center Type(Colocation, Self-Built Hyperscalers (CSPs), Enterprise, and Edge), and Infrastructure (Electrical Infrastructure, Mechanical Infrastructure). The Market Forecasts are Provided in Terms of Value (USD).

The Data Center Infrastructure Management Market is estimated to be valued at USD 2.5 billion in 2025 and is projected to reach USD 7.5 billion by 2035, registering a compound annual growth rate (CAGR) of 11.8% over the forecast period.

The global data center infrastructure management market valued ~$1.5 billion in 2020 and is expected to witness rapid growth in between 2021-30.